How to use trading signals for successful on -site trade
The world of cryptocurrency trade has become increasingly popular in recent years, and thousands of merchants have been trying to make a living by buying and selling cryptocurrencies. While some people have achieved a significant success, many others have lost money due to poor trading strategies.
One of the general mistakes that many new merchants make is that it relies solely on their own intuition or emotions when making decisions on trade. However, this approach can be catastrophic if the trader does not use technical analysis, indicators or other tools to support their decisions.
In this article, we examine how to use trading signals on the cryptocurrency market for successful space trade.
What are trading signs?
Trading signals are alarms indicating when to enter or exit on the trading on a predetermined conditions. These signals can be produced using various technical indicators, for example:
- Moving averages
- Relative strength index (RSI)
- Bollinger bands
- Stochastic oscillator
- Momentum -indicators
Types of trading signals
There are two main types of trading signals:
Bullish and Bearish .
* Bullish Sign : This type of sign indicates that the market is moving upwards, indicating the potential purchase option.
* Bear Sign : This type of signal indicates that the market is downward, indicating the potential selling option.
How to use trading signals for successful on -site trade
Follow these steps to effectively use trading signals:
- Select the appropriate indicators : Select relevant indicators in the cryptocurrency pair and have proven results in generating profitable signals.
- Set multiple alarms : Set multiple alarms at different price levels, such as 10 PIPs above or below the current level.
- Configuration of alarm settings : Set the alarm settings to optimize the trading experience, including:
* Thresholds (such as 5% movement above/below current price)
* Time Frames (such as 1 hour, 4 -hour charts)
* Alarm frequency (for example, every hour, only if the signal is generated)
- Use a trading plan : Make a trading plan outlining risk management strategies and entry/exit points.
- Backing of your strategy
: Backtest The trading strategy using historical data to ensure that it generates long -term profitable signals.
Example of Trading Signs to use Spot Trading
Suppose you are a merchant or interested in Bitcoin (BTC). You decided to use the Bollinger bands as a signal and set the alarms to 10 points above and below the current price. Your commercial plan includes:
- Entry: Buy BTC if the signal is generated (such as 0.1% movement above the current price)
- Exit: Enter BTC if the signal is generated (such as 0.1% movement below the current price)
Using trading software such as Metatrader or TradingView, sets your alarms and configures your plan as follows:
| Indicator Threshold Time frame
| — — —
| Bollinger Bands | 10 PIPs above 4 hour diagram
After configuring your plan, you monitor the pointer and enter the trade accordingly.
Tips for successful patch trade with trading signals
While the use of trading signals can increase the chance of success in on -site trade, it is essential that you should not forget that trading strategy is not crazy either. Here are some additional tips to keep in mind:
* Stay discipline : Contact your plan and avoid impulsive decisions based on emotional factors.
* Study : Be up -to -date with market developments and change the indicators and plan if necessary.
* Handling the risk : Set stop-losses and risk-benefit ratios to protect your capital.
* Observe trade : Observe your trading performance and set your strategy accordingly.